Does not matter: Ag issues to watch as spending deadline approaches — Biden looks to Black farmers for rural support

Sep 14, 2020

Presented by Boehringer Ingelheim Animal Health

With help from Eric Wolff

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WELCOME TO YOUR WEEK: We're about halfway through September, and all eyes on Capitol Hill will soon turn to the stopgap spending bill Congress must pass to avert a government shutdown at the end of the month.

Priority No. 1 is keeping the lights on at the Agriculture Department, FDA and other agencies — all the more important in the middle of a pandemic — but there are a few other ag-related issues that could be part of the potential package.

Keep the stimulus funds flowing: The White House has asked Congress to include language in the continuing resolution that would ensure USDA can keep making trade aid and coronavirus relief payments to farmers and ranchers burned by retaliatory tariffs and supply chain disruptions.

The same request last year prompted a partisan spat when Democrats considered withholding the provision — a move that would have effectively frozen Trump's tariff relief program — but they ultimately backed down. Of course, such a standoff is far less likely this year, as there's much broader support for the ongoing coronavirus farm rescue programs compared with Trump's trade bailout checks.

Disaster aid: Congress could add emergency funds to the CR to address severe weather damage across the country, from hurricanes in the Southeast to the catastrophic wildfires on the West Coast — and potentially the derecho that ripped across Iowa and other states in August, if needed. But there's some resistance from top appropriators to bundling the two issues together, per our Pro Budget colleagues.

Funding fix for ag inspections: There's also pressure from industry groups to stem a budget shortfall for agricultural inspectors tasked with keeping plant and animal diseases from reaching the U.S. and causing havoc for crop and livestock producers. The program is funded by fees, which dried up after the steep drop in travel and trade, as we flagged earlier this summer. Now there's heightened concern after African swine fever was discovered in Germany last week.

50 DAYS UNTIL ELECTION DAY — The spotlight is still on a handful of Midwestern and Eastern swing states that could decide the Nov. 3 election. Here's a quick campaign trail roadmap for the week:

— President Donald Trump will visit Minnesota and Wisconsin on Friday; Vice President Mike Pence and Donald Trump Jr. will fan out for separate events across Georgia, Iowa, Michigan, Ohio, Pennsylvania and Wisconsin.

— Democratic nominee Joe Biden will visit Florida on Tuesday and Minnesota on Friday. He's also expected to give a speech today on climate change and the California wildfires, as Trump heads to the Golden State this afternoon.

HAPPY MONDAY, SEPT. 14! Welcome to your weekly agriculture report, where we've never been so happy for football season to kick off (but your host is also struggling to keep up with every sport happening at once). Send tips to rmccrimmon@politico.com and @ryanmccrimmon, and follow us @Morning_Ag.

A message from Boehringer Ingelheim Animal Health:

When animals are healthy, people are, too. Our 3,100 U.S. employees enhance the well-being of animals and people by guarding against diseases that threaten their health and our food supply. We're proud to build on our long history of supporting U.S. producers by supplying a FMD vaccine bank for the USDA. Learn more.

Driving the Day

BIDEN LOOKS TO BLACK FARMERS FOR RURAL SUPPORT: The former veep has been trying to make a dent in Trump's support among farmers and rural voters, and part of Biden's strategy is to appeal to the nation's nearly 49,000 Black ag producers, who are concentrated in Southern battleground states including Florida, Georgia and North Carolina, writes POLITICO's Ximena Bustillo.

Over the summer, Biden's campaign enlisted surrogates and organized roundtable discussions in an aggressive push to build support among the small but potentially significant slice of the rural vote. Black farmers have long faced higher barriers to success in agriculture, including difficulties keeping farmland that was long held by their families or accessing USDA financial programs.

John Boyd, president of the National Black Farmers Association, endorsed Biden earlier this and says he's "given up" on hoping to advance a platform for Black farmers under the Trump administration. The Biden campaign so far has released a plan to work with nonwhite farmers to tackle the disparities in the industry and federal farm policy, and surrogates like former Agriculture Secretary Mike Espy have assured ag voters that Biden would address such issues as president.

But, but, but: The campaign outreach isn't convincing for everyone. The USDA Coalition of Minority Employees sent a letter to the campaign warning that the group was disappointed in the lack of a "solution-driven civil rights policy" like the ideas backed by Biden's onetime primary rivals Elizabeth Warren and Bernie Sanders. The coalition said Biden's plans were "a marathon away" from such detailed proposal s .

JOIN TOMORROW – A PLAYBOOK INTERVIEW WITH BIDEN CAMPAIGN MANAGER JEN O'MALLEY DILLON: Join Playbook co-authors Anna Palmer and Jake Sherman for a virtual interview with Joe Biden's campaign manager, Jen O'Malley Dillon, to discuss how her team is adapting to this new election landscape, whether Bob Woodward's new bombshell book will have lasting impact on the campaign, and the Biden campaign's assessment of the state of play in the top battleground states. REGISTER HERE.

Corn used to make ethanol. | AP

Ethanol producers have been frustrated by some of Trump's biofuel policies. | AP

TRUMP OFFERS A BOOST FOR ETHANOL SECTOR: The president tweeted over the weekend that he'll remove federal roadblocks to the sale of 15 percent ethanol gasoline in standard fuel pumps that currently facilitate the 10 percent blend. As far the administration is concerned, just about any filling station can now sell gas with the higher blend of ethanol without having to replace its entire underground infrastructure, a major obstacle to increased E15 sales, our Pro Energy friends tell MA.

2020 context: The announcement could help Trump shore up support from corn growers and biofuel producers who have been frustrated by his ethanol policies — namely the EPA's heavy use of blending exemptions for oil refiners — as polls indicate a close race in Iowa.

On the trade front: Brazil agreed to a 90-day extension of its quota for duty-free imports of U.S. ethanol, punting a final decision on the matter until after the November elections. The provision expired on Aug. 31, leaving American ethanol exporters subject to a 20 percent tariff. ( More details here.)

— The Trump administration has leaned on Brazilian President Jair Bolsanaro to offer flexibility, which could prevent further political damage to Trump among corn and ethanol producers. But Bolsanaro is also under pressure from the domestic sugar industry to do away with the ethanol quota.

MORE MEATPACKING FINES: Worker safety regulators on Friday night issued a roughly $15,000 fine against JBS for failing to protect employees from Covid-19 at the Brazilian-owned company's slaughterhouse in Greeley, Colo. It's the second financial penalty against a major meatpacker, after Smithfield Foods was dinged $13,500 for safety shortfalls at a South Dakota plant — but critics say the fines are so modest that they won't be an effective deterrent, the Washington Post reports.

— The United Food and Commercial Workers International Union released a blistering statement that the government's failure to protect workers "has reached new lows" with the "so-called fine" against JBS, after at least 200 workers at the Greeley plant were infected and several died.

— Labor Secretary Eugene Scalia said in a CNBC interview on Friday that the department could bring steeper penalties against companies in incidents "where the breach is more willful."

Row Crops

— Trump's new trade deal with Canada and Mexico is expected to bring a relatively tiny bump in exports compared with NAFTA, but on the campaign trail the president has pointed to the new USMCA as one of his biggest accomplishments for U.S. agriculture. CBC News has details on how the trade pact is playing with Wisconsin dairy farmers, who are seen as one of the main winners among ag sectors. Read the story.

— Roughly a third of all Americans could have legal access to recreational marijuana if state ballot initiatives are approved this November in Arizona, New Jersey and elsewhere. While the House prepares to vote this month on legalizing weed at the federal level, states are steaming toward allowing cannabis sales with or without Congress, per the Pro Cannabis team.

— Whole Foods CEO John Mackey predicts that many consumers won't go back to buying food in grocery stores after the pandemic, one of many changes in U.S. shopping habits likely to stick around for the long term. The Wall Street Journal has more.

— Washington Gov. Jay Inslee said his state looks "apocalyptic" as wildfires rage across the West Coast, killing at least 33 people and burning millions of acres. Inslee said climate change is making the fires "start easier, spread faster and intensify," POLITICO reports.

HAPPENING WEDNESDAY - HOW WILL WE RETURN TO AIR TRAVEL? Air travel has been significantly disrupted by the coronavirus pandemic. The decline in passengers has cost billions — an unprecedented blow to the economy, at home and abroad. As Congress mulls granting an extension in payroll assistance in the CARES Act to U.S. airlines, join CEOs Patrick Steel of POLITICO and Scott Kirby of United Airlines for a virtual conversation about the future of air travel and what it will take to get Americans back into the sky. REGISTER HERE.

A message from Boehringer Ingelheim Animal Health:

At Boehringer Ingelheim Animal Health, we know people and animals are connected in deep and complex ways, and we're dedicated to enhancing the well-being of both. We also believe no animal should suffer from a preventable disease. Our portfolio includes some of the most highly regarded and broadly used vaccines, parasite-control products and pharmaceuticals to help protect livestock, pets and horses.

Across the U.S., in places like Georgia, Iowa, Missouri and Minnesota, our 3,100 U.S. employees nurture the inextricable link between animals and people, inspired by the vision of creating a healthier tomorrow for animals and people.

We're proud to build on a long history of supporting U.S. livestock producers by fulfilling a USDA contract to help supply a foot-and-mouth disease vaccine bank. That bank will protect cattle and swine in the event of an FMD outbreak in the U.S.

Learn more about Boehringer Ingelheim Animal Health in the U.S.

THAT'S ALL FOR MA! Drop us a line: rmccrimmon@politico.com; hbottemiller@politico.com; lcrampton@politico.com; jyearwood@politico.com and pjoshi@politico.com.